Angela's Angel Hair, Ltd. generously sponsors a defined benefit plan for the many worthy employees of...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Angela's Angel Hair, Ltd. generously sponsors a defined benefit plan for the many worthy employees of the company. On January 1, 2021 the following balances related to the defined benefit plan: $ 1,550,000 $ 1,620,000 Fair value of plan assets (MRAV) Projected benefit obligation Pension liability (credit balance) 70,000 Other comprehensive income - prior service cost (dr. balance) 99,000 Other comprehensive income - gains/losses (dr. balance) $ 228,000 The following additional data are provided by the drone actuaries: 2021 1 Service cost 142,000 2 Settlement rate 6% 3 Actual return on plan assets 4 Amortization of prior service cost 5 Expected return on plan assets 6 Unexpected gain/(loss) from change in the projected benefit 96,780 33,000 127,000 obligation due to a change in actuarial predictions 41,000 7 Plan contributions paid-in 8 Benefits paid to worthy retirees 9 Plan amendment for LLWS effective Dec. 31, 2021 (increase in PBO) 24 121,000 110,200 72,000 10 Average remaining service life of employees (2021 and 2022) 11 years Instructions: a Calculate the following 1 Projected benefit obligation at Dec. 31, 2021 2 Fair value of plan assets at Dec. 31, 2021 3 Pension liability at Dec. 31, 2021 4 Unamortized prior service cost at Dec. 31, 2021 5 Unamortized "gains & losses" at Dec. 31, 2021 b Prepare the 2021 journal entries relative to the pension plan. e Calculate the amortization of loss for 2022 Problem #4 2021 DR (CR) DR (CR) DR (CR) DR Pension OCI OCI FVPA Pension Expense Cash (CR) asset/liab "gain/loss" PSC PBO MRAV Balance - January 1, 2021 Journal entry PBO change due to changes in actuarial assumptions Journal entry - (A) Service cost Interest cost (BOY PBO x settlement rate) Actual return plan assets Gain/(loss) plan assets (BOY MRAV x erpa rate - actual) (debit OCI - loss, Credit OCI - gain) Contributions (credit cash) Balancing entry Journal entry Journal entry - amortization of PSC Journal entry amortization of Loss Journal entry plan amendment Benefits paid Balances - December 31, 2021 Problem #4 Angela's Angel Hair, Ltd. generously sponsors a defined benefit plan for the many worthy employees of the company. On January 1, 2021 the following balances related to the defined benefit plan: $ 1,550,000 $ 1,620,000 Fair value of plan assets (MRAV) Projected benefit obligation Pension liability (credit balance) 70,000 Other comprehensive income - prior service cost (dr. balance) 99,000 Other comprehensive income - gains/losses (dr. balance) $ 228,000 The following additional data are provided by the drone actuaries: 2021 1 Service cost 142,000 2 Settlement rate 6% 3 Actual return on plan assets 4 Amortization of prior service cost 5 Expected return on plan assets 6 Unexpected gain/(loss) from change in the projected benefit 96,780 33,000 127,000 obligation due to a change in actuarial predictions 41,000 7 Plan contributions paid-in 8 Benefits paid to worthy retirees 9 Plan amendment for LLWS effective Dec. 31, 2021 (increase in PBO) 24 121,000 110,200 72,000 10 Average remaining service life of employees (2021 and 2022) 11 years Instructions: a Calculate the following 1 Projected benefit obligation at Dec. 31, 2021 2 Fair value of plan assets at Dec. 31, 2021 3 Pension liability at Dec. 31, 2021 4 Unamortized prior service cost at Dec. 31, 2021 5 Unamortized "gains & losses" at Dec. 31, 2021 b Prepare the 2021 journal entries relative to the pension plan. e Calculate the amortization of loss for 2022 Problem #4 2021 DR (CR) DR (CR) DR (CR) DR Pension OCI OCI FVPA Pension Expense Cash (CR) asset/liab "gain/loss" PSC PBO MRAV Balance - January 1, 2021 Journal entry PBO change due to changes in actuarial assumptions Journal entry - (A) Service cost Interest cost (BOY PBO x settlement rate) Actual return plan assets Gain/(loss) plan assets (BOY MRAV x erpa rate - actual) (debit OCI - loss, Credit OCI - gain) Contributions (credit cash) Balancing entry Journal entry Journal entry - amortization of PSC Journal entry amortization of Loss Journal entry plan amendment Benefits paid Balances - December 31, 2021 Problem #4
Expert Answer:
Answer rating: 100% (QA)
Pension Worksheet 2021 Items Annual Pension Expense Cash OCIPrior Service Cost OCIGainLoss Pension A... View the full answer
Related Book For
Intermediate Accounting IFRS
ISBN: 978-1119372936
3rd edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
Posted Date:
Students also viewed these accounting questions
-
Gottschalk plc sponsors a defined benefit plan for its 100 employees. On January 1, 2019, the company's actuary provided the following information. Pension plan assets (fair value and market-related...
-
Murray Enterprises Inc. sponsors a defined benefit plan for its 500 employees. On December 31, 2014, the company's actuary provided the following information related to the plan: defined benefit...
-
Scott Enterprises Inc. sponsors a defined benefit plan for its 500 employees. On December 31, 2017, the company's actuary provided the following information related to the plan: defined benefit...
-
A communal vegetable garden has been set up by the council for 68 members of a small self- sustaining community. Each of the 68 members can either contribute towards taking care of the garden or...
-
A bank was expecting to receive $100,000 from a loan issued to the Spanish government. Since Spain has problems repaying the loan immediately, the bank extends the loan for another year at the same...
-
The EZ Construction Company is offered a $ 20,000 contract to build a new deck for a house. The companys profit if it does not have to sink piers (vertical supports) down to bedrock will be $ 4,000....
-
Your instructor will divide your class randomly into groups of four to six people. Acting as a team, with everyone offering ideas and one person serving as official recorder, each group will be...
-
Frieden Companys contribution format income statement for the most recent month is given below: Sales (40,000 units) . . . . . . . . . . . $800,000 Variable expenses . . . . . . . . . . . . 560,000...
-
Discuss the effects of all five major accounting assumptions on the accounting process
-
Which histograms are skewed to the left? Refer to histograms A through H in Figure 2.12. 2.0 -50 0.0 1.0 3 150 5 15 25 D -1 -3 8 14 -7 -4 -1 G Figure 2.12 Eight histograms LO 09 007 01 08 01 250 09...
-
22. The payroll for the week ended November 21 is $15,000 with 15 percent withheld for employee income taxes and 8 percent for FICA taxes. The total amount of taxes to be remitted by the employer for...
-
1. Suppose the historical annual volatility and mean of returns on the Japanese TOPIX index are 20% and 2%, respectively, while the annual historical Japanese inflation is 0.1%. Further, suppose that...
-
You own a construction company. You have been offered two different jobs, but they both must be done in the next month and they would both take all of your workers to complete within that time. The...
-
What are some advantages of incorporating your business? What are some reasons why you wouldn't want to incorporate?
-
What would a training guide matrix for a global team in an organization related to marketing science look like?
-
Credit Suisse has a bond which matures in three years with a coupon of 4.0%. The required rate of return on UBS's three- debt is 4.55%. What is the theoretical price of the bond? (5) Establish the...
-
A Gas Turbine has a maximum output power of 150 MW at a speed of 2000 rpm. A shaft of length 5 m made of EN8 steel (properties given in the table below) is to transfer torque from the turbine to...
-
U.S. households have become smaller over the years. The following table from the 2010 GSS contains information on the number of people currently aged 18 years or older living in a respondent's...
-
Castleman Holdings had the following investment portfolio at January 1, 2019. During 2019, the following transactions took place. 1. On March 1, Rogers Company paid a £2 per share dividend. 2....
-
Recording Sales Transactions Presented below is information from Lopez Computers Incorporated. July 1 Sold $30,000 of computers to Smallwood Company with terms 3/15, n/60. Lopez uses the gross method...
-
Presented below are various account balances. a. Bank loans payable of a winery, due March 10, 2022. (The product requires aging for 5 years before sale.) b. Serial bonds payable, 1,000,000, of which...
-
Consider the two-tank liquid-level system shown in Figure 7.17. The liquid is pumped into tanks 1 and 2 through valves of linear resistances \(R_{1}\) and \(R_{2}\), respectively. The pressure of the...
-
The room shown in Figure 7.34 has a heater with heat flow rate input of \(q_{0}\). The thermal capacitances of the heater and the room air are \(C_{1}\) and \(C_{2}\), respectively. The thermal...
-
Consider the single-tank liquid-level system shown in Figure 7.16, where the volume flow rate into the tank through a pipe is \(q_{\mathrm{i}}\). A pump is connected to the bottom of the tank through...
Study smarter with the SolutionInn App